A charity by any other name?
Posted: Wednesday 18 January 2012
In Scotland, only organisations which have been entered on the Scottish Charity Register can describe themselves as a “charity”, a “charitable body”, a “registered charity” or a “charity registered in Scotland”. The Office of the Scottish Charity Regulator (“OSCR”) is empowered to investigate any organisation which is not on the Register but which appears to be representing itself as being registered, and can issue directions to an organisation, directing it to stop describing itself as a charity.
OSCR has recently issued directions to the Zimbabwean Alliance for Human Rights Limited, its company secretary and its company director. This company was referring to itself as a charity, but it was not on the register. OSCR was also concerned that the company’s articles of association consistently referred to the company being a charity, even though it was not on the register. During its investigations, OSCR also discovered that the company’s director Bekithemba Moyo had described the company as a charity to the police when questioned regarding a separate matter.
The Zimbabwean Alliance for Human Rights Limited describes itself as being “formed by Zimbabweans in Scotland to achieve evolving human rights culture that requires spreading awareness amongst masses about these rights and also their duty for respecting the rights of others.” As reported in Third Sector, Mr Moyo said "We wanted to be a charity so we said in the Companies House document that we were a charity. We really didn’t see anything wrong with that." He also claimed that the company had later tried to register with OSCR but had heard nothing back until receiving the direction, though OSCR claims it did not receive any such documentation.
It is easy to feel some sympathy for organisations with good intentions who may not appreciate the law. Nevertheless, the rules on the use of the term charity are strict precisely so that OSCR can ensure only organisations which are genuinely charitable, and which provide benefit to the public, are allowed to call themselves charities. At the same time, those organisations which do appear on the Register are subject to ongoing scrutiny by OSCR in order to ensure they maintain certain standards. Without the strict rules surrounding the use of the word, public confidence in charities could be compromised. It is for this reason that failure to comply with the direction can result in a fine and - at its extreme - imprisonment.
This case should serve as a useful reminder for all organisations who refer to themselves as charities in Scotland to make sure they are entitled to do so.
If you would like to find out more about charity law in Scotland, please contact Lauren Scott
